Bitcoin price and momentum continue to break records, with the top crypto hitting a new all-time high. On December 16, market data showed that Bitcoin reached $106,488 in early trading hours before falling to $104,771. At this point, many short traders were liquidated. Here are all the details…
Bitcoin price jumps, traders affected
The milestone extends the flagship crypto asset’s impressive rally, which gained momentum following Donald Trump’s election victory in November. Last month, Bitcoin’s value crossed the $100,000 mark for the first time after rising more than 15% over that period. Priced in euros, Bitcoin also hit an all-time high of €101,212, down slightly to €99,610 as of press time, according to CoinMarketCap. This is the first time the value of the most valuable asset has crossed the €100,000 mark.
The sharp price increase led to significant liquidations in the crypto market. Coinglass reported that investors speculating on Bitcoin lost $119 million in the last 24 hours, with most of these losses coming from bearish positions. Traders’ total losses over the same period rose to $312 million when other cryptocurrencies were factored in. Short-term traders, who accounted for nearly $200 million of the liquidations, bore the heaviest burden during this bullish phase, highlighting the volatile nature of the crypto market.
How did the whales move?
Whale activity has remained relatively high over the past few days as the price of Bitcoin has climbed back above $101,000. According to market data from Coinglass, the supply of Bitcoin on centralized exchanges has decreased by over 37,000 in the last seven days to hover around 2.25 million at the time of writing. US spot BTC ETFs saw huge demand last week, with net cash inflows of around $2.17 billion, led by BlackRock’s IBIT and Fidelity’s FBTC. Meanwhile, on-chain data analysis by Glassnode reveals that long-term holders are accelerating overall Bitcoin sales, suggesting that the cycle top is near. On the other hand, Bitcoin addresses with at least 100 coins have increased by 1,582 in the last 9 weeks.
Bitcoin adoption is gaining momentum as both institutional players and governments begin to realize its potential. President-elect Donald Trump recently promised that his administration would take significant steps to ensure that the US is a leader in the cryptocurrency industry. Texas has already taken steps to create a strategic Bitcoin reserve, signaling that similar steps could be taken at the federal level. With the US national debt exceeding $36 trillion, Bitcoin could play a role in strengthening economic resilience.
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